Boliden Nordic Brass - a highly competitive Nordic brass company

6/27/2003 5:00 AM EST

Boliden and Hexagon form Boliden Nordic Brass AB - a joint venture
between Boliden Gusum AB and Nordic Brass AB. This agreement will create
a strong Nordic brass company with the necessary prerequisites to meet
the ever-increasing competition from the European brass industry. The
annual turnover of the new company is estimated at SEK 500 million.
Production will be concentrated to one plant in Gusum. Operations will
commence in the immediate future, and the majority of the changes are
expected to be implemented during 2003. The joint venture and suggested
changes in structure are subject to the approval of the appropriate
competition authorities.

Production within the new company will be concentrated to one plant
located in Gusum, Sweden. Operations in Västerås will be phased out and
part of the production equipment there will be moved to Gusum. By
concentrating production to one plant, the necessary prerequisites will
be created to continue to operate a brass company with long-term
profitability, and meet the ever-increasing competition from the
European brass industry in particular. The new company's production
costs are deemed to be on a par with the most profitable brass companies
in Europe.

Operations in the new company will commence in the immediate future,
with the majority of the changes are expected to be implemented during
2003. Structural costs will primarily be financed through
rationalisation of working capital. Full synergy effects are expected to
be achieved during 2004.

Boliden Gusum's copper tubing operations, which are not part of this
agreement, will be moved to Boliden's copper tubing plants in Holland
and Belgium. Sales and distribution for the Nordic market will remain
within Boliden Gusum AB.

Concentrating production will generate a surplus of employees at both
plants and a total of approximately 160 people will be affected. Initial
discussions have commenced at both companies with the union
organisations and personnel concerned.

Göran Ek, the current President of Nordic Brass AB, has been appointed
new President of Boliden Nordic Brass, and Bengt Olof Johansson, Vice
President of Boliden Fabrication, has been appointed Chairman.

"Merging these two companies is one way of meeting the increasingly hard
global competition. The brass industry in North America began
restructuring several years ago. Our competitors in south and central
Europe, of which there are still many, are considerably larger than the
current players on the Nordic market are individually. We are creating
the platform for a Nordic player with long-term profitability," declares
Ola Rollén, President and CEO of Hexagon.

"This agreement makes perfect industrial sense and will generate
significant synergy effects. We have now started the necessary
restructuring of the European brass industry, and by playing an active
part in this process we see a significant future potential for the brass
operations," says Jan Johansson, President and CEO of Boliden.

Hexagon and Boliden, who each own an equal share of Boliden Nordic
Brass, will report their ownership in the new company as an associated
company. The restructuring will marginally affect profit participation
of the companies' as the new company activates restructuring costs.

For further information, please contact:
Ola Rollén, President and Torbjörn Wistrand, VP of Operations
CEO
Hexagon AB Hexagon AB

Phone: +46 8 601 26 20 Phone: +46 8 601 26 20

Jan Johansson, CEO B-O Johansson, Head of Boliden Fabrication
Boliden Boliden
Phone: +46 8 610 16 02 +46 70 217 69 89


Hexagon AB is a multinational engineering group with the long-term
ambition of positioning itself as number one or number two within its
strategic sectors. The operation is divided into four business areas:
Hexagon Automation, Hexagon Engineering, Hexagon Metrology and Hexagon
Polymers. The group's targets are to increase earnings per share after
tax by at least 15 per cent p.a., and achieve a return on capital
employed higher than 15 per cent over the business cycle. Current
turnover amounts to more than 7 GSEK p.a.